2. EncryptCo is considering a project with a $50,000 first cost that returns $12,000 per year. Assume that it will have a salvage value of $5500 at the end of its service life. The MARR is 12 percent (a) Calculate the payback period for this project. (3 marks) (b) Calculate the discounted payback period for this project. Use Excel to do this and include the Excel output in your Assignment report.(3 marks) 3. JazzCo is considering a project with a first cost of $120,000, annual savings of $40,000 and a salvage value of $25,000. The project will last 4 years. JazzCo's MARR is 11% annual compounded annually. (a) Calculate the project IRR. Check with Excel. Include the Excel output with your assignment report. Use the rate function and Goal Seek. [6 marks) (b) Should jazzCo pursue the project, based on the value of the IRR? Why or why not? (5 marks) 4. ScramblerCo has received an advance of $25,000 on a materials testing project. The company will spend $120,000 at the end of this year and then receive $100,000 at the end of the second year. Its MARR is 10%. (3) Calculate the acurate ERR. (5 marks) (b) Calculate the approximate ERR. (5 marks) 5. QuizCo would like to use the IRR method to choose between projects A and B below. QuizCo's MARR is 10%. Each project lasts 5 years. (a) Calculate the IRR for each project. Check with Excel using the IRR function, the rate function, and Goal Seek. Include the Excel output in your Assignment. (5 marks) (b) Calculate the incremental IRR. {4 marks) (c) Which project should be selected based on incremental IRR? (2 marks) First Cost _ 13.000 3700 6. Textbook #427